Yemisi Izuora
The Manufacturers Association Of Nigeria, (MAN), has observed greater patronage Of made in Nigeria goods by government agencies, a situation it said will boost Indigenous capacity and help grow the economy.
President of MAN, Dr Frank Udemba Jacobs said in Lagos that his association had collaborated with ENABLE2, a United Kingdom Department for International Development ( DFID) program to advocate increased patronage for Nigerian goods which he said has recorded a significant success within a short period.
Jacobs explained the advocacy centered on the review of the current Public Procurement Act, introducing the Executive Order on improved Government Patronage of ‘Made-in-Nigeria” products and the current build up against smuggling and counterfeiting activities in the Nigerian economy.
He identified Government as the largest single spender in the economy and could drive industrial development and economic growth by increasing its patronage of locally made products and noted that Public Procurement is not just mere purchases but a strategic fiscal tool that has been used by other countries, including advanced nations to develop their manufacturing sector.
“It is an established fact that when we buy foreign goods, we pay the returns to factors used in producing them in the originating countries; that is to say that we pay wages, rent, interest and profit to foreign countries with our local resources.
Most intriguing is the fact that when we buy foreign goods, we expand the industrial base of the producing country, thereby creating more jobs there, to the detriment of our local economy. In contrast, when we patronize made-in-Nigeria products, we expand our industrial base, create more jobs and reduce the human misery brought about by poverty in the country.” he added.
The president expressed gratitude to the Federal Government for supporting the Made-In-Nigeria campaign and for introducing the Executive Order. According to him,MAN believes that the quest of the Federal Government to promote Made-in-Nigeria goods can be best achieved if the Executive Order on patronage of local products is based on Sector-Specific Margins of Preferences (MOP) and that the beauty of adopting MOP is the fact that it recognizes the peculiarities within each sector and defines the prosperity or otherwise of operators in these sectors.
Jacobs further stated that five Man Sectors were selected In the first phase of the advocacy campaign, Textiles, wearing apparel, carpet, leather/leather footwear; Chemical and Pharmaceuticals; Pulp, Paper & Paper products, Printing & Publishing; Basic metal, Iron and steel and fabricated metal products and Wood & Wood Products Industry, adding that the selection was based on the outcome of studies commissioned by MAN and the computed sectoral MOPs with special consideration for SMEs, based on the perceived impacts the implementation of sector-specific MOPs will have on the growth of 1) manufacturing output, 2) additional investments, 3) income 4) employment as well as 5) government tax revenue, adding that this would be replicated in other sectors as the advocacy campaign progresses.
Jacobs while commending the Federal Government for the support, solicits for further patronage through procurement value chains and the effective implementation of the Executive Order, using the Margins of Preference of at least 35 per cent in favour of products that are made locally. “I implore all Nigerians to keep our factories running and our teeming youths gainfully employed by patronising Nigerian poducts and dropping the bloated appetite for imported products.
He recommended the setting up of a margin of preference for made-in-Nigeria products for Government, but stressed that though the MOP for the five pilot sectors averaged 63 per cent, however a 35 per cent for starters is reasonable taking into cognizance the tight financial position of the Government at the moment.
Jacobs said States and Local Governments should be encouraged to enshrine patronage of made-in-Nigeria products in their procurement policies and processes while concerted efforts be made to sustain, monitor, enforce and ensure that the 40 per cent participation rate for MSMEs provided in the Executive order is strictly adhered to.
He also suggest the the creation of a sustainable platform through which the general public will be continuously educated on the need to jettison the current penchant for foreign goods and patronize locally manufactured products and the review of laws against dumping, smuggling, adulteration and counterfeiting activities in the country to impose stricter penalty on culprit.